Case: Tyco Electronics 2007

old logo

THE STORY

Another conglomerate break-up. In 2004, in the wake of the Dennis Kozlowski looting scandal, Tyco's new management claimed their strategy "no longer is one of growth through acquisitions but rather calls for operating a set of businesses that have some synergy" (WSJ, 6/15/04). Three years later, the spin-outs of the Tyco Electronics and Tyco Healthcare divisions suggest that synergy can go only so far. Electronics ($12.8 billion) and Healthcare ($9.5 billion) make more sense as independent plays, leaving Tyco International ($18.1 billion) to find greater synergy (or further spin-outs) among its remaining safety/fire and industrial equipment brands.

Unlike Tyco Healthcare (now "Covidien") , rather than creating something new, Electronics CEO Tom Lynch chose the naming path of least resistance (for the moment) by elevating the existing division name to corporate brand level. So he licensed "Tyco" from Tyco Industries, accepting the risk of sharing brand control with an unrelated company. For several preceding years, the "Tyco/Electronics" division had surpressed acquired brand and subsidiary names, to strengthen its own presence, and research showed it had earned independent respect in the marketplace.

Given the shared name, the design of yet another Tyco wordmark would make no sense (and 'Tyco Electronics' is long for a wordmark), so a symbol was warranted. Interbrand designed a lively TE monogram that neatly evokes connection.

The businesses were restructured in three principal units named Electronic Components, Network Solutions and Wireless Systems (plus an "Other," for flexibility). A tagline, "Our commitment. Your advantage." expresses their common brand promise.